Stock Market Update

The S&P 500 futures currently trade 23 points above fair value. 

Equity indices in the Asia-Pacific region had a mixed showing on Monday with South Korea's Kospi (-5.1%) giving back some of its big gains from Friday. The U.S. Treasury confirmed that it took part in a joint intervention in the foreign exchange market with Japan's Ministry of Finance and Treasury Secretary Bessent called for increasing the size of the facility that was used to conduct the operation. Final July Manufacturing PMI readings from the region showed accelerating growth in most economies. Chinese press reported that convertible bond sales in China could exceed CNY100 bln this year.

• In economic data:
  • China's July RatingDog Manufacturing PMI 50.9 (expected 51.9; last 51.7)
  • Japan's July Manufacturing PMI 54.5 (expected 54.7; last 54.8)
  • South Korea's July trade surplus $30.23 bln (expected surplus of $29.59 bln; last surplus of $36.09 bln). July Imports 26.5% yr/yr (expected 26.6%; last 30.0%) and Exports 62.8% yr/yr (expected 59.0%; last 70.7%). July Manufacturing PMI 53.1 (last 52.1)
  • Australia's July Manufacturing PMI 52.0 (expected 51.7; last 51.5). July MI Inflation Gauge 1.0% m/m (last -0.4%) and July ANZ Job Advertisements 2.0% m/m (last -0.2%)
  • New Zealand's June Building Consents -3.6% m/m (last -4.9%)
  • India's July Manufacturing PMI 53.5 (expected 53.9; last 54.2)

---Equity Markets---

• Japan's Nikkei: -0.9%
• Hong Kong's Hang Seng: +0.5%
• China's Shanghai Composite: -0.6%
• India's Sensex: +0.7%
• South Korea's Kospi: -5.1%
• Australia's ASX All Ordinaries: +0.5%

Major European indices trade firmly in the green while the U.K.'s FTSE (+0.2%) struggles to keep pace as AstraZeneca (AZN) weighs amid reports that the company held merger talks with Bristol-Myers Squibb (BMY). Falling energy prices and indications of U.S.-Iran deescalation have contributed to the overall strength in the region. Final July Manufacturing PMI readings from the region showed some deceleration in growth compared to flash estimates, though the eurozone's reading (51.9) remained above 50.

• In economic data:
  • Eurozone's July Manufacturing PMI 51.9 (expected 52.0; last 52.0)
  • Germany's June Retail Sales -1.1% m/m (expected -0.4%; last 1.2%); -0.2% yr/yr (last -2.8%). July Manufacturing PMI 52.2, as expected (last 52.2)
  • U.K.'s July Manufacturing PMI 51.9 (expected 52.8; last 52.8)
  • France's July Manufacturing PMI 49.8 (expected 50.0; last 50.0)
  • Italy's Manufacturing PMI 51.3 (expected 52.5; last 52.2)
  • Swiss July CPI -0.1% m/m, as expected (last 0.0%); 0.4% yr/yr (last 0.5%). July Manufacturing PMI 53.2 (expected 54.5; last 54.3)

---Equity Markets---

• STOXX Europe 600: +0.4%
• Germany's DAX: +1.4%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +1.2%
• Italy's FTSE MIB: +0.9%
• Spain's IBEX 35: +0.7%